Economy 2024-05-15T11:54:48+03:00
Ukrainian news
NBU Supposes Non-Receipt Of USD 1.3 Billion Tranche From IMF In 2016 Over Rada's Failure To Pass Necessary Law

NBU Supposes Non-Receipt Of USD 1.3 Billion Tranche From IMF In 2016 Over Rada's Failure To Pass Necessary Laws

IMF, tranche, Verkhovna Rada, NBU, Valeriya Hontareva, laws

The National Bank of Ukraine (NBU) supposes that the International Monetary Fund (IMF) probably will not disburse the next tranche of USD 1.3 billion for Ukraine because the Verkhovna Rada failed to pass the necessary laws.

NBU Governor Valeriya Hontareva announced this in an interview for Reuters, Ukrainian News Agency reports.

«Ukraine risks not receiving loans worth USD 1.3 billion that it is awaiting from the International Monetary Fund before the end of 2016, due to parliament's reluctance to pass key reforms... There are risks that we will not manage to receive it this year,» she said

"The central bank is responsible for its territory, unfortunately we can't do pension and land reform etcetera," she said. It was the responsibility of parliament to pass these changes and the budget, she said.

The NBU carried out its promises to the IMF under the aid-for-reforms program, the Governor added, including a clean-up of the banking sector, and that the blame for the current delays lay with parliament.

If Ukraine does not receive the IMF cash and an additional $700 million from the European Union this year according to the schedule, year-end reserves will stand no higher than the present USD 15.5 billion - USD 2 billion below the latest forecast, she said.

As Ukrainian News Agency earlier reported, the IMF in September approved disbursement of a USD 1 billion loan for Ukraine.

In the updated Memorandum of Cooperation, Ukraine undertakes before the IMF to carry out the land reform and to adopt the law on raising the retirement age for citizens step-by-step.

In early October, the Verkhovna Rada extended the moratorium on alienation of agricultural lands by one year till January 1, 2018.

Before, the NBU expected the IMF to have disbursed the next tranche in the amount of USD 1.3 billion before the yearend.

November 3, the IMF mission arrived in Ukraine and proceeded to work.